Kering: Jefferies maintains 'buy' rating, cuts target price
(CercleFinance.com) - Jefferies has reiterated its "buy" rating on the Kering share, while trimming its corresponding target price from 610 euros to 600 euros, after the luxury goods group's interim trading update, stating "we still see significant value in the stock at current levels".
"We think the implied valuation of Gucci is 9x fwd EBIT, and 14x P/E in the context of estimated growth of 8% on a 41% EBIT margin," the broker says.
"Normalisation of growth does not equate to U/P in any way. We see the discount here as excessive, approaching our downside scenario for no real reason".
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"We think the implied valuation of Gucci is 9x fwd EBIT, and 14x P/E in the context of estimated growth of 8% on a 41% EBIT margin," the broker says.
"Normalisation of growth does not equate to U/P in any way. We see the discount here as excessive, approaching our downside scenario for no real reason".
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.